Suppose that you write a put contract with a strike price of $40 and an expiration date

Question:

Suppose that you write a put contract with a of $40 and an expiration date in three months. The current stock price is $41 and the contract is on 100 shares. What have you committed yourself to? How much could you gain or lose?
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.